The demonetization effect has taken India by storm. People just don’t understand what to do because all their old currency has become a worthless piece of paper. Now, people are standing in queues to get their old currency exchanged or to deposit their existing old notes.
Now there are changes in the deposit rules too! Yes, today the government announced a new rule for multiple cash deposits. Earlier to escape submission of PAN, people would deposit Rs 50,000 per transaction. Yes, as per the Income Tax department, a person wasn’t asked for his PAN card if he has deposited less than Rs 50,000 per day!
Now, the rules are changed. A circular was passed by the Income Tax department in which it was stated that if a person makes a deposit between the 9th of November to 30th of December, he will have to submit a Pan card if his total deposit is Rs 2.5 lakhs in Saving account or 12.5 lakhs in your current account in this 50 day window.
Let us have a look as to when will you have to mandatorily submit the PAN card;
1. If you make a cash deposit of Rs 50,000 during any 1 day!
2. If your total deposits till 30th December, account to Rs 2.5 lakhs!
3. Time deposit in any scheduled or co-operative bank or a post office.
4. If you purchase pay orders, demand drafts or banker’s cheques in cash for above Rs 50,000 on any single day
5. If you open an account apart from basic bank deposit account/ Jan Dhan account or time deposit account.
The notification read “The department has issued 25 crore PANs till date. Persons requiring a PAN to comply with the rule should apply to the NSDL (National Securities Depository Ltd) in a prescribed format with documentary proof,”
PM Modi will leave no stone unturned to track deposits! So what do you have to say about this? Do share your views in our comments section below!
